Jabal Omar Development Company announced that it has begun working with the Ministry of Finance to convert the 3 billion riyal loan it obtained into a Murabaha loan compliant with Islamic Sharia law.

The company clarified that, according to the existing financing agreement, it is entitled to convert the current loan into a Sharia-compliant loan, noting that this requires amending the existing contracts into an Islamic Murabaha facility agreement, thereby bringing the loan into compliance with Sharia law and the company’s articles of association. It expects to complete the conversion process during the third quarter of 2017, noting that the loan’s principal amount will remain unchanged and there will be no financial impact on its financial statements. Jabal Omar Development had previously signed a financing loan agreement with the Ministry of Finance on December 13, 2011, for 3 billion riyals, to be repaid over eight years, including a two-year grace period.